Young workers ‘most likely to face financial problems’

Young adults are the most likely to have financial difficulties because they do not earn as much as older workers.

Analysis by Skipton Building Society has discovered people aged between 18 and 24 are struggling to make ends meet as they try to balance their outgoings and incomings. 

However, over-55s are typically debt free, own their current car outright and have no mortgage to pay, which means it is much easier for them to save additional money throughout the year.

Only 29 per cent of over-55s struggle financially towards the end of the month, a figure that rises to 52 per cent for those aged 18 to 24. Six in ten older people could also book a holiday and pay it off in full if they so wished. 

"The statistics certainly look great for older people as they paint a picture of later life and retirement being great and financially secure," said Ian Cornelius, commercial director at Skipton Building Society.

He added young workers will look at their parents and assume they can look forward to a comfortable retirement, but they will need to work hard on their retirement income if this is to be true. 

Under-25s are constantly worrying about their bank balance, with 55 per cent checking their account before going on a night out.

"There is light at the end of the tunnel for many people who feel saving and planning for a brighter future is not achievable for them. The road to financial stability can be a long and sometimes rocky one," stated Mr Cornelius.

He added no one should be resting on their laurels when it comes to looking after their finances, as circumstances can always change unexpectedly and leave personal finances in a precarious position. 

The best thing consumers can do if they want to stay debt free is to set up a budget and stick to it.

By Amy White